If you are interested in cashing in on Artesian Resources Corporation’s (NASDAQ:ARTN.A) upcoming dividend of $0.24 per share, you only have 3 days left to buy the shares before its ex-dividend date, 08 February 2018, in time for dividends payable on the 23 February 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Artesian Resources’s latest financial data to analyse its dividend attributes. See our latest analysis for Artesian Resources
Here’s how I find good dividend stocks
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
- Is it the top 25% annual dividend yield payer?
- Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
- Has the amount of dividend per share grown over the past?
- Is it able to pay the current rate of dividends from its earnings?
- Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How does Artesian Resources fare?
Artesian Resources has a trailing twelve-month payout ratio of 64.75%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a payout ratio of 61.38%, leading to a dividend yield of around 2.68%. Furthermore, EPS should increase to $1.53. If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. ARTN.A has increased its DPS from $0.69 to $0.94 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. These are all positive signs of a great, reliable dividend stock. Compared to its peers, Artesian Resources has a yield of 2.60%, which is on the low-side for Water Utilities stocks.
Considering the dividend attributes we analyzed above, Artesian Resources is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. There are three important aspects you should further research:
- 1. Future Outlook: What are well-informed industry analysts predicting for ARTN.A’s future growth? Take a look at our free research report of analyst consensus for ARTN.A’s outlook.
- 2. Historical Performance: What has ARTN.A’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- 3. Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.